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BRFS

BRF BOVESPA:BRFS3 Stock Report

Last Price

R$14.54

Market Cap

R$15.7b

7D

13.3%

1Y

-48.9%

Updated

26 Jun, 2022

Data

Company Financials +
BRFS3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

BRFS3 Stock Overview

BRF S.A. focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products.

BRF Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BRF
Historical stock prices
Current Share PriceR$14.54
52 Week HighR$28.54
52 Week LowR$11.71
Beta1.34
1 Month Change-4.53%
3 Month Change-16.39%
1 Year Change-48.95%
3 Year Change-50.75%
5 Year Change-62.91%
Change since IPO658.61%

Recent News & Updates

Shareholder Returns

BRFS3BR FoodBR Market
7D13.3%-0.8%-0.8%
1Y-48.9%-7.5%-29.7%

Return vs Industry: BRFS3 underperformed the BR Food industry which returned -7.5% over the past year.

Return vs Market: BRFS3 underperformed the BR Market which returned -29.7% over the past year.

Price Volatility

Is BRFS3's price volatile compared to industry and market?
BRFS3 volatility
BRFS3 Average Weekly Movement7.6%
Food Industry Average Movement5.6%
Market Average Movement5.9%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.8%

Stable Share Price: BRFS3 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BRFS3's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of BR stocks.

About the Company

FoundedEmployeesCEOWebsite
1934100,000Lorival Luzhttps://www.brf-global.com

BRF S.A. focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products. The company’s product portfolio comprises meat products, including frozen whole and cut chicken, frozen pork, and beef; processed food products, such as marinated, frozen, whole and cut chicken, roosters, turkey meat, sausages, ham products, bologna, frankfurters, salamis, bacon, cold meats, other smoked products, chicken sausages, chicken hot dogs, and chicken bologna; and frozen processed meats comprising hamburgers, steaks, breaded meat products, kibbeh, and meatballs. It also produces and sells frozen prepared entrees, such as pastas and pizzas, including lasagna, macaroni, sandwiches, cheese breads, and other ready-to-eat meals; pies and pastries comprising chicken and heart-of-palm pies, sauces, and toppings; frozen desserts; plant-based products, such as nuggets, pies, vegetables, and hamburgers; and soy meal, refined soy flour, and animal feed, as well as sell frozen French fries, margarine, butter, and cream cheese.

BRF Fundamentals Summary

How do BRF's earnings and revenue compare to its market cap?
BRFS3 fundamental statistics
Market CapR$15.67b
Earnings (TTM)-R$1.06b
Revenue (TTM)R$49.79b

0.3x

P/S Ratio

-14.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BRFS3 income statement (TTM)
RevenueR$49.79b
Cost of RevenueR$40.49b
Gross ProfitR$9.31b
Other ExpensesR$10.37b
Earnings-R$1.06b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)-0.99
Gross Margin18.69%
Net Profit Margin-2.13%
Debt/Equity Ratio193.5%

How did BRFS3 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is BRFS3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BRFS3?

Other financial metrics that can be useful for relative valuation.

BRFS3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does BRFS3's PS Ratio compare to its peers?

BRFS3 PS Ratio vs Peers
The above table shows the PS ratio for BRFS3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1x
SMTO3 São Martinho
2.5x11.3%R$14.1b
BEEF3 Minerva
0.3x4.4%R$7.9b
MDIA3 M. Dias Branco Indústria e Comércio de Alimentos
1.1x0.1%R$8.7b
MRFG3 Marfrig Global Foods
0.09x4.2%R$8.5b
BRFS3 BRF
0.3x5.9%R$15.7b

Price-To-Sales vs Peers: BRFS3 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1x).


Price to Earnings Ratio vs Industry

How does BRFS3's PE Ratio compare vs other companies in the South American Food Industry?

Price-To-Sales vs Industry: BRFS3 is good value based on its Price-To-Sales Ratio (0.3x) compared to the BR Food industry average (1.1x)


Price to Sales Ratio vs Fair Ratio

What is BRFS3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BRFS3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: BRFS3 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


Share Price vs Fair Value

What is the Fair Price of BRFS3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BRFS3 (R$14.54) is trading above our estimate of fair value (R$14.2)

Significantly Below Fair Value: BRFS3 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BRFS3's PEG Ratio to determine if it is good value.


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Future Growth

How is BRF forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


99.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRFS3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.1%).

Earnings vs Market: BRFS3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BRFS3 is expected to become profitable in the next 3 years.

Revenue vs Market: BRFS3's revenue (5.9% per year) is forecast to grow faster than the BR market (5.7% per year).

High Growth Revenue: BRFS3's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRFS3's Return on Equity is forecast to be low in 3 years time (14%).


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Past Performance

How has BRF performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


42.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BRFS3 is currently unprofitable.

Growing Profit Margin: BRFS3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BRFS3 is unprofitable, but has reduced losses over the past 5 years at a rate of 42.1% per year.

Accelerating Growth: Unable to compare BRFS3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BRFS3 is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (54%).


Return on Equity

High ROE: BRFS3 has a negative Return on Equity (-8.28%), as it is currently unprofitable.


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Financial Health

How is BRF's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BRFS3's short term assets (R$26.3B) exceed its short term liabilities (R$19.4B).

Long Term Liabilities: BRFS3's short term assets (R$26.3B) exceed its long term liabilities (R$23.5B).


Debt to Equity History and Analysis

Debt Level: BRFS3's net debt to equity ratio (119.3%) is considered high.

Reducing Debt: BRFS3's debt to equity ratio has increased from 177.4% to 193.5% over the past 5 years.

Debt Coverage: BRFS3's debt is not well covered by operating cash flow (1.4%).

Interest Coverage: BRFS3's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


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Dividend

What is BRF current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.90%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BRFS3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BRFS3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRFS3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRFS3's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: BRFS3 is not paying a notable dividend for the BR market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BRFS3 has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Lorival Luz (50 yo)

4.75yrs

Tenure

Mr. Lorival Nogueira Luz Jr. has been Member of Executive Board of BRF S.A. since September 2017 and had been its Global Chief Operating Officer since 2018 until June 17, 2019 and serves as its Global Chie...


Leadership Team

Experienced Management: BRFS3's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: BRFS3's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.4%.


Top Shareholders

Company Information

BRF S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: BRF S.A.
  • Ticker: BRFS3
  • Exchange: BOVESPA
  • Founded: 1934
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: R$15.666b
  • Shares outstanding: 1.08b
  • Website: https://www.brf-global.com

Number of Employees


Location

  • BRF S.A.
  • Rua Jorge Tzachel, nº 475
  • Bairro Fazenda
  • Itajaí
  • Santa Catarina
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.